What is Money Lending?
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc.
The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid, as well as to repay the principal amount borrowed.
Money Lending License In Uganda
Any person wishing to lend money must acquire a Money Lending license from Uganda Microfinance Regulatory Authority (UMRA) by submitting its incorporation documents,
the particulars of its directors and secretary, and paying the requisite fee.
Who issues money lending licenses in Uganda?
Today any person who intends to carry on the business of moneylending will have to apply
formally to the Uganda Microfinance Regulatory Authority (UMRA).
How much does it cost to get a money lending license in Uganda?
Application for a search of the register 25,000Ugshs.
Certificate fees are 20,000 Ugshs.
Inspection and registration of additional places 300,000 Ugshs.
What is the interest rate for money lenders in Uganda?
UGX Deposit
For less than UGX 10 Million
| Sr. No. | Tenor of the retail deposit | Rates |
|---|---|---|
| 1. | 30 days to 90 days | 4.00 % |
| 2. | 91 days to 180 days | 5.00 % |
| 3. | 181 days to 270 days | 6.00 % |
| 4. | 271 days to less than 1 year | 7.00% |
| 5. | 1 year and above to less than 2 years | 8.25 % |
| 6. | 2 years and above | 8.25 % |
| – | ||
| Sr. No. | Tenor | Rates |
| 1. | 12 months | 8.25 % |
| 2. | 24 months | 8.50 % |
| 3. | 36 months | 8.50 % |
For UGX 10 Million and above to less than 500 Million
| Sr. No. | Tenor of the retail deposit | Rates |
|---|---|---|
| 1. | 30 days to 90 days | 4.50 % |
| 2. | 91 days to 180 days | 5.25 % |
| 3. | 181 days to 270 days | 6.50 % |
| 4. | 271 days to less than 1 year | 7.50 % |
| 5. | 1 year and above to less than 2 years | 8.75 % |
| 6. | 2 years and above | 8.75 % |
| Flexi Deposit | ||
| Sr. No. | Tenor | Rates |
| 1. | 1 year | 8.75 % |
| 2. | 2 years | 8.75 % |
| 3. | 3 years | 8.75 % |
For UGX 500 Million and above
| S. No. | Tenor of the retail deposit | Rates |
|---|---|---|
| 1. | 30 days to 90 days | 4.50 % |
| 2. | 91 days to 180 days | 6.00 % |
| 3. | 181 days to 270 days | 7.00 % |
| 4. | 271 days to less than one year | 8.00% |
| 5. | 1 year and above to less than 2 years | 9.00 % |
| 6. | 2 years and above | 9.00 % |
| Flexi Deposit | ||
| Sr. No. | Tenor | Rates |
| 1. | 1 year | 9.00 % |
| 2. | 2 years | 9.00 % |
| 3. | 3 years | 9.00 % |